11. The Ultimate Guide to Testing Your Business Idea for Success

The Ultimate Guide to Testing Your Business Idea for Success

Since it was already December, we decided to hold a free Christmas tree embroidery masterclass.

Our goals were:

– To get 50 participants for the masterclass;
– To get the email addresses of the masterclass participants.

The masterclass was to be held on Sara’s Instagram profile. We hoped to increase activity on the Instagram profile and attract a new audience. We planned promotional posts in some of the crafting communities. Participants in the masterclass had to sign up and leave their email to receive a list of materials and a sketch of the brooch. All the preparations took about a week.

It should be noted that no online embroidery masterclass had ever been held on Instagram before. It was something new and unfamiliar to both us and the participants. But it was this fact that added to the excitement and fueled us. It was so eerie to see what would come out of this endeavor!

Sara had been up late embroidering a sample for a masterclass and had only gone to bed a couple of hours ago.

“How I wish I could stay in bed a little longer, but I promised to post the masterclass announcement at 8:00, so I have to pull myself together and try to open my eyes.”

After half an hour of trying, Sara finally left her sleepy state, found the text she had prepared, took a photo of her work, and posted the announcement on her account. It was now safe to get some more sleep. She woke up about three hours later, at noon.

“I wonder what’s up with the masterclass. Has anyone registered for it, or is it quiet?” – Sara checked the number of registrations and almost dropped her phone.

In just three hours, 80 registrations!
– There are already 80 of them! – Shouted an excited Sara into the phone. She was so shocked that she had forgotten to put on her clothes and was skipping around the apartment in her underwear and T-shirt. – In just three hours. Can you imagine? Eighty people would be looking at me. That’s a lot! I can’t do it. I’m canceling all the commercials!
– Don’t you dare cancel anything. It’s going great! If so many came in three hours, people are interested in the idea. 
Enjoy it. – I said calmly, though my insides were excited and joyful.

As a result, 170 people registered for the masterclass! Everything went perfectly. Over 50 people completed the workshop to the end, and their pages were decorated with Christmas tree brooches with rave reviews of the masterclass.

The Ultimate Guide to Testing Your Business Idea for Success

Way to test a business idea or product

Speed is essential in testing an idea! In practice, ideas that take a long time to think about do not even make it to the testing stage. Therefore, it is necessary to minimize the time interval between the emergence of an idea and its implementation.

Once during a conversation, I was asked to list five critical qualities for success. And the first item on that list was the speed of decision-making.

By developing this skill, you will increase your productivity and ensure you can act faster in business and life.

Do you know what slows many people down on the road to success?

PERFECTIONISM! – The desire to do everything perfectly, without a single mistake. 

But it does not happen. Unfortunately, mistakes are inevitable. So it’s better to start taking action right now, even if you have doubts, even if there are gaps in your knowledge, even if you don’t know where everything will lead.

The main thing is to do!

There is such a concept as MVP (minimal viable product)

The essence of the principle is that in any business, to test the idea, you must give the maximum value to the target audience, having spent the minimum amount of resources on its development. Then, after testing, collect metrics, and analyze and improve the idea/product. You need to provide just enough value for some customers to buy.

For example, you have a desire to create a new business (an online knitting school). You assume that to do this, you need to:

  • find a videographer to shoot quality videos;
  • edit the video so that everything is on a professional level;
  • create a school website where the content will be protected from theft;
  • to sell master classes at a high price;
  • look for clients through paid advertising;
  • have a sum of money to put your plan into action

This plan can live in your head for years, and ultimately, it will lead to nothing.

Or you can do the MVP thing:

  • shoot a video on your phone;
  • post it as a YouTube video;
  • write a post about selling the master class;
  • send a link to the video to those who paid for the master class;
  • to buy advertising in relevant groups on social networks;
  • collect feedback on the master class from those who have bought it;
  • to sell for a small sum and ask clients to tell about your master class on their social networking pages;
  • analyze statistics on conversion, clickability, sales;
  • digitize the sales funnel.
The Ultimate Guide to Testing Your Business Idea for Success

How to test your business idea fast? Few simple steps.

Create a landing page:

  1. Build a simple landing page that explains your products and their benefits.
  2. Include a call-to-action, such as signing up for updates or leaving their email address.
  3. Drive traffic to the landing page through social media, online communities, or targeted ads.
  4. Measure the conversion rate to gauge interest.

Conduct surveys and interviews: 

Create online surveys using platforms like Google Forms to gather insights from your target audience. Ask relevant questions to understand their preferences and willingness to pay. Additionally, interview potential customers to dive deeper into their needs and gather qualitative feedback.

Leverage social media and online communities: 

Utilize social media platforms and online communities to engage with your target audience. Share your idea, ask for feedback, and spark discussions. These platforms can also help you identify potential customers, influencers, and experts who can provide valuable insights.

Seek partnerships or collaborations: 

Look for opportunities to partner with players in your industry. Collaborations can provide access to their customer base, resources, and expertise, allowing you to test your idea at a lower cost.

Utilize online advertising: 

Set up targeted advertising campaigns to reach your target audience. Platforms like Google Ads, Facebook Ads, Instagram, or Etsy allow you to define your audience based on demographics, interests, and behaviors. Test different ad variations and monitor the click-through rates and conversions to assess the market’s interest in your products.

Thus, a minimum viable product can be created and launched in 1-2 days. And such a launch will give you invaluable information in the form of feedback from the target audience.

Assignment 15. Think about what minimum product you can launch in 1-2 days.